ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Robert deposited $2500 in a back account compounding monthly for 2 years, at a rate of 6% p.a. What is the correct calculation?
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2500 x 0.06 x 2
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2500(1+0.06)2
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2500 x 0.005 x 24
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2500(1+0.005)24
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Explanation:
Detailed explanation-1: -2500 Amount = C.I = A-P = Rs. 3025-2500 = Rs. 525.
Detailed explanation-2: -∴ Amount will be Rs. 3025 and Interest will be Rs. 525 If Compounded Annually.
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